Finger Minutiae Record

NEWS: How UIDAI is using AI to tackle payment frauds

What is in the News?

• As more frauds related to the Aadhaar-enabled Payment System (AePS) come to the fore, the Unique Identification Authority of India (UIDAI), has turned to artificial intelligence-based systems in a bid to limit the cases — this includes developing technologies around fingerprinting and facial recognition.
• The technology uses a combination of both finger minutiae and finger image to check the liveness of the fingerprint captured. 
• The measure was implemented after instances of people creating fake fingerprints using silicone to syphon off money from unsuspecting individuals’ bank accounts were reported.

FMR-FIR

• The Finger Minutiae Record–Finger Image Record (FMR-FIR) modality is an Artificial Intelligence / Machine Learning technology used by UIDAI to prevent fraud in Aadhaar-enabled Payment System (AePS).
• It verifies the authenticity of fingerprints during authentication by combining finger minutiae (distinct ridge characteristics) and finger images. 
• This technology helps detect cloned fingerprints, ensuring that only real fingerprints are used for verification, thus enhancing security and preventing fraud.

Significance

• In FY2023, the total number of fraud cases in the banking system was 13,530. Of this, almost 49 per cent or 6,659 cases were in the digital payment – card/internet – category.
• As payment-related frauds rise, this AI-based solution aims to enhance security and curb financial crimes associated with the AePS system.

Practice Questions for Prelims

Finger Minutiae Record technology is developed by

a) BIS
b) UIDAI
c) RBI
d) NITI AAYOG

Ans. b)

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